DEPARTMENT OF THE INTERIOR 


TN 872 
.04 A3 
1916 
Copy 2 


REGULATIONS 

TO GOVERN 

OIL AND GAS OPERATIONS 

ON 


RESTRICTED INDIAN LANDS IN OKLAHOMA 


APPROVED OCTOBER 20,1915, AND AMENDED MARCH 15,1916 

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WASHINGTON 

GOVERNMENT PRINTING OFPICE 




TN §72 
.(94 A 3 

copy* 

REGULATIONS TO GOVERN OIL AND GAS OPERATIONS ON RESTRICTED 
INDIAN LANDS IN OKLAHOMA. 


DEFINITIONS. 

The following expressions, wherever used in the lease and regula¬ 
tions, shall have the meaning now designated, viz: 

Superintendent .—The superintendent of any Indian agency in 
Oklahoma, or any other person w T ho may be in charge of such agency 
and reservation, and it shall be his duty to enforce compliance with 
these regulations. 

Inspector .—Any person appointed as inspector of oil and gas oper¬ 
ations, or who may be designated by the Secretary of the Interior or 
the Commissioner of Indian Affairs to supervise oil or gas operations 
on restricted Indian lands, acting under general instructions from 
the Bureau of Mines and under the supervision of the superintendent. 

Oil lessee .—Any person, firm, or corporation to whom an oil-mining 
lease is made under these regulations. 

Gas lessee .—Any person, firm, or corporation to whom a gas lease 
is made under these regulations. 

Leased lands .—The term 66 leased lands ” or “ leased premises ” or 
“ leased tract ” shall mean any restricted lands belonging to Indian 
allottees within the State of Oklahoma from which restrictions have 
not been removed, and which have been leased by such allottees with 
the approval of the Secretary of the Interior. 

OPERATIONS. 

1. No operations shall be permitted upon any tract of land until a 
lease covering such tract shall have been approved by the Secretary 
of the Interior. 

POWERS AND DUTIES OF INSPECTOR. 

It shall be the duty of the inspector— 

2. To visit from time to time leased lands where oil and gas mining 
operations are being conducted and to inspect and supervise such 
operations, with a view to preventing waste of oil and gas, damage to 
oil, gas, or water bearing formations, or to coal measures or other 
mineral bearing deposits, or injury to property or life, in accordance 
with the provisions of these regulations. 

3. To make reports to the superintendent and to the Bureau of 
Mines as to the general conditions of the leases, property, and the man¬ 
ner in which operations are being conducted and his orders complied 
with. 

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4. To consult and advise with the superintendent as to the condi¬ 
tion of the leased lands and to submit information and recommenda¬ 
tions from time to time for safeguarding and protecting the property 
of the lessor and securing compliance with the provisions of these 
regulations. 

5. To give such orders or notices as may be necessary to secure com¬ 
pliance with the regulations and to issue all necessary instructions or 
orders to lessees to stop or modify such methods or practices as he 
may consider contrary to the provisions of such regulations. 

6. To modify or prohibit the use or continuance of any operation 
or method which, in his opinion, is causing or is likely to cause any 
surface or underground waste of oil or gas or injury to any oil, gas, 
water, coal, or other mineral formation, or which is dangerous to life 
or property or in violation of the provisions of these regulations. 

I 7. To prescribe, subject to the approval of the superintendent, the 
manner and form in which all records or reports called for by these 
, regulations shall be made by the lessee. 

8. To prohibit the drilling of any well into any producing sand, 
|[ vhen in his opinion and with the approval of the superintendent 
the marketing facilities are inadequate, or insufficient provision has 

( been made for controlling the flow of oil or gas reasonably to be ex¬ 
pected therefrom, until such time as suitable provision can be made. 

9. To prescribe or approve the methods of drilling wells through 
coal measures or other mineral deposits. 

10. To determine when and under what conditions a producing 
well may be drilled deeper and under what conditions a producing 
well or sand may be abandoned. 

11. To require that tests shall be made to detect waste of oil or gas 
or the presence of water in a well, and to prescribe or approve the 
methods of conducting such tests. 

12. To require that any condition existing subsequent to the com¬ 
pletion of a well which is causing, or is likely to cause, damage to an 
oil, gas, or water-bearing formation, or to coal measures, or other 
mineral deposits, or which is dangerous to life or property, be cor¬ 
rected as he may prescribe or approve. 

13. To approve the type or size of separators used to separate the 
oil, gas, or water coming from a well. 

14. The inspector may limit the percentage of the open flow capac¬ 
ity of any well wdiich may be utilized when in his opinion such action 
is necessary to properly protect the gas-producing formation. 

15. The inspector shall be the sole judge of whether his orders have 
been fully complied with and carried out. 

DUTIES OF LESSEES. 


16. Before actual drilling or development operations are com¬ 
menced on the leased lands, or within not less than 30 days from 
the date of approval of these regulations in case of producing 
leases or leased lands on which such operations have been com¬ 
menced prior to such approval, the lessee or assignee shall appoint 
a local or resident representative within the State on whom the 
siiDerintendent or other authorized representative of the Depart¬ 
ment of the Interior may serve notices or otherwise communicate 






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with, in securing compliance with these regulations and shall notify 
the superintendent of the name and post-office address of the repre¬ 
sentative so appointed. 

In the event of the incapacity or absence from the county of such 
designated local or resident representative, the lessee shall appoint 
some person to serve in his stead and in the absence of such repre¬ 
sentative, or of notice of the appointment of a substitute, any em¬ 
ployee of the lessee upon the leased premises or the contractor or 
other person in charge of drilling operations thereon shall be consid¬ 
ered the representative of the lessee for the purpose of service of 
orders or notices as herein provided, and service upon any such em¬ 
ployee, contractor, or other person shall be deemed service upon the 
lessee. 

17. Five days prior to the commencement of drilling operation 
lessee shall submit, on forms to be furnished bv the superintendent 
a report in duplicate showing the location of the proposed welb 

18. Lessee shall keep upon the leased premises accurate records o 
the drilling, redrilling, or deepening of all wells, showing formation 
drilled through, casing used, together with other information as indi 
cated on prescribed forms to be furnished by the superintendent an< 
shall transmit such and other reports of operations w T hen requirec 
by the superintendent. 

19. Lessee shall furnish on the 1st day of January and the 1st da % 
of July of each year a plat in manner and form as prescribed b 
the superintendent, showing all wells, active or abandoned, on thi 
leased lands, and other related information. Blank plats will be fui 
nished upon application. 

20. Lessee shall clearly and permanently mark all rigs or web 
in a conspicuous place, with the name of the lessee and the numbe* 
or designation of the well, and shall take all necessary precautior 
for the preservation of these markings. 

21. Lessee shall not drill within 200 feet of boundary line q 

leased lands except with the consent of the superintendent. Lesso 
shall not locate any well or tank within 200 feet of any public higl r 
way or any building used as a dwelling, granary, barn, or establishe L 
watering place, except with the written permission of the supe: 
intendent. m 

22. Lessee shall notify the superintendent, in advance, of intention 
to use the mud-fluid process of drilling, so that the inspector may 
approve the method and material to be used, in the event the operator 
is not familiar with this process. 

23. Lessee shall provide a properly prepared slush pit into which 
all sand pumpings and other materials extracted from the well dur¬ 
ing the process of drilling shall be deposited. Such sand pumpings 
and materials shall not be allowed to run over the surface of the 
land. The construction of such pits shall be subject to the approval 
of the inspector. 

24. Lessee shall effectually shut out and exclude all water from any 
oil or gas-bearing stratum and take all proper precaution and meas¬ 
ures to prevent the contamination or pollution of any fresh water 
supply encountered in any well drilled for oil or gas. 

25. Lessee shall protect to the satisfaction of the inspector each 
productive oil or gas-bearing formation drilled through for the pur¬ 
pose of producing oil or gas from a lower formation. 


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26. Lessee shall place an approved gate valve, or other approved 
controlling device, on the innermost string of casing seated in the 
ve 1, and keep same in place and in proper condition for use until 
tiie^well is completed, whenever drilling operations are commenced 
m W1 ldcat territory, or m a gas or oil field where high pressures 
are known to exist, whenever the inspector shall deem same necessary 
tor the proper control of the production from the well. 

27. When natural gas is encountered in commercial quantities in 
any well, lessee shall confine such gas to its natural stratum until 
such time as the same can be produced and utilized without waste, 
it being understood that a commercial quantity of gas produced by 
a well is any unrestricted flow of natural gas in excess of 2,000,000 

ibic feet per 24 hours: Provided , That if in the opinion of the 
iperintendent gas of a lesser quantity shall be of commercial value, 
Le superintendent shall have authority to require the conservation of 
udd gas. Water shall not be introduced into any well where such 
. Production will operate to kill, or restrict the open flow of gas 
,ierein. 

. 28. Lessee shall separate the oil from the gas when both are pro¬ 
duced in commercial quantities from the same formation or under 
r tch conditions as might result in waste of oil or gas in commercial 
lantities. 

7 29. Lessee shall not use natural gas from a distinct or separate 
a turn for the purpose of flowing or lifting the oil. 

/ 30. Lessee shall prevent oil or gas or both from escaping from 
_uy well into the open air, and not permit any oil or gas well to go 
lid or to burn wastefully. 

[31. Lessee shall not use natural gas in place of steam to operate 
igines or pumps under direct pressure except with the special per¬ 
mission of the inspector. 

32. Lessee shall not use natural gas in flambeau lights, save as 
ithorized or approved by the inspector. 

<33. Lessee shall use every possible precaution, in accordance with 
e most approved methods, to stop and prevent waste of natural 
v ,is and oil, or both, at the wells and from connecting lines, and to 
, event the wasteful utilization of such gas about the well. 

34. Lessee shall notify the superintendent a reasonable time in ad¬ 
vance of starting work, of intention to redrill, deepen, plug, or 
abandon a well; and whenever the superintendent or inspector has 
given notice that extra precautions are necessary in the plugging of 
Avells in a particular territory, lessee shall give at least three days’ 
advance notice of such intended plugging. 

35. Lessee shall not abandon any well for the purpose of drilling 
deeper for oil or gas unless the producing stratum is properly pro¬ 
tected, and shall not abandon any well producing oil or gas except 
with the approval of the superintendent or where it can be demon¬ 
strated that the further operation of such well is commercially un¬ 
profitable. 

36. Lessee shall plug and fill all dry or abandoned wells on the 
leased lands in the manner required, and where any such well pene¬ 
trates an oil or gas bearing formation it shall be thoroughly cleaned 
to the bottom of the hole before being plugged or filled, and shall 
then be filled with mud-laden fluid of a consistency approved by the 



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inspector, from the bottom to the top thereof, before any casing is 
removed from the well, or in lieu of the use of such mud fluid, each 
oil and gas bearing formation shall be adequately protected by 
cement, or approved plugs, or by both such plugs and cement, and 
the well filled in above and below such cement or plugs with ma¬ 
terial approved by the inspector. 

Where both fresh water and salt water are encountered in any 
dry or abandoned well which is not being filled with mud-laden fluid 
as hereinbefore provided, the fresh water shall be sufficiently pro¬ 
tected against contamination by cement or approved plugs, or by 
both such cement and plugs, to be placed at such points in the well 
as the inspector shall approve for the protection of the fresh water. 

37. If such abandoned or dry well be in a coal bed or other mineral 
vein deposit, or be in such condition as to warrant taking extra¬ 
ordinary precautions, the inspector may require such variations in 
the above-prescribed methods of plugging and filling as may be 
necessary in his judgment to protect such seam or deposit against 
infiltration of gas or water, and to protect all other strata encoun¬ 
tered in the well. 

38. The manner in which such mud-laden fluid, cement, or plugs 
shall be introduced into any well being plugged, and the type of 
plugs so used, shall be subject to the approval of the inspector. 

In the event the lessee or operator shall fail to plug properly any 
dry or abandoned well in accordance with these regulations, the 
superintendent may, after five days’ notice to the parties in interest, 
plug such well at the expense of the lessee or his surety. 

39. All B-S or water from tanks or wells shall be drained off into 
proper receptacles located at a safe distance from tanks, wells, or 
buildings, to the end that same may be disposed of by being burned 
or transported from the premises. 

Where it is impossible to burn the B-S, or where it is necessary to 
pump salt water in such quantities as would damage the surface of 
the leased land, or adjoining property, or pollute any fresh water, 
the lessee shall notify the superintendent, who.shall give instructions 
in each instance as to the disposition of such B-S or salt water. 

40. Lessee shall make a full and complete report to the superin¬ 
tendent of all accidents or fires occurring on the leased premises. 

41. Lessee shall provide approved tankage of suitable shape for 
accurate measurement, into which all production of crude oil shall 
be run from the wells, and shall furnish the superintendent copies of 
accurate tank tables and all run tickets, as and when requested. 

42. The superintendent may make arrangements with the pur¬ 
chasers of oil for the payment of the royalty, but such arrangements, 
if made, shall not relieve the lessee from responsibility for the pay¬ 
ment of the royalty should such purchaser fail, neglect, or refuse to 
pay the royalty when it becomes due: Provided , That no oil shall be 
run to any purchaser or delivered to the pipe line or other carrier 
for shipment or otherwise conveyed or removed from the leased 
premises until a division order is executed, filed, and approved by 
the superintendent, showing that the lessee has a regularly approved 
lease in effect and the conditions under which the oil may be run. 
Lessees shall be required to pay for all oil or gas used off the leased 
premises for operating purposes; affidavits shall be made as to the 


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production used for such purposes and royalty paid in the usual 
manner. 1 he lessee or his representatives shall be present when oil 
is taken irom l ease d premises under any division order, and w T ill 
be responsible tor the correct measurement thereof and shall report 
all oil so run. 

The lessee shall also authorize the pipe-line company or the pur- 
chasei or oil to furnish the superintendent with a monthly state¬ 
ment, not later than the 10th day of the following calendar month, 
of the gross barrels run as common carrier shipment or purchased 
from his lease or leases. 

43. Lessee will not be permitted to use any timber from any Osage 
lands except under written agreement with the owner, and in all 
cases where lands are restricted such agreement shall be subject to 
the approval of the superintendent or inspector. Lessee shall, when 
requested by the superintendent, furnish a statement under oath as 
to whether the rig timbers were purchased on the leased tract, and if 
so, state the name of the person from whom purchased and give such 
other information regarding the procurement of timber as the super¬ 
intendent may desire. 

44. Unless expressly provided for in the lease, lessees shall pay to 
the superintendent for the parties in interest all reasonable damage 
done to the surface and any growing crops thereon or to improve¬ 
ments on said land in the amount of such damage when agreed upon 
between the parties in interest. When such amount can not be agreed 
upon, any of such parties may notify the superintendent, whereupon 
the superintendent shall notify the parties in interest that if such 
claims can not be arbitrated satisfactorily, he will, after 10 days 
from date of notice, investigate the matter of damage, such notice 
to be sent the lessee, allottee, or his heirs, and such other person as 
may have informed the superintendent in writing of a claim to an 
interest in such lands. The superintendent shall thereupon deter¬ 
mine the damage and apportionment thereof between the parties in 
interest, such determination to be final unless an appeal therefrom 
be taken to the Secretary of the Interior Avithin 10 days from the 
date of notice of such determination. The decision of the Secretary 
of the Interior shall be final and conclusive upon all parties con¬ 
cerned. The lessee shall be permitted to proceed with operations 
pending determination of the amount of damage by the superin¬ 
tendent upon depositing with the superintendent such amount as he 
may stipulate as sufficient to cover the damages claimed, and such 
lessee may continue with operations pending appeal upon depositing 
such additional amount, if any, as may be sufficient to cover the dam¬ 
ages as fixed and apportioned by the superintendent, the surplus, if 
any, to be returned to the lessee. Pending action upon the appeal 
so much of said amount as is not in dispute by the parties in interest 
may be disbursed. 

45. Failure to comply with any provision of these regulations shall 
subject the lease to cancellation by the Secretary of the Interior or 
the lessee to a fine of not more than $500 per day for each and every 
day the terms of the lease or of the regulations are violated, or the 
orders of the superintendent pertaining thereto are not complied 
with or to both such fine and cancellation, in the discretion of the 
Secretary of the Interior: Provided , That the lessee shall be entitled 


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to notice and hearing with respect to the terms of the lease or of the 
regulations violated, which hearing shall be held by the superin¬ 
tendent, whose finding shall be conclusive unless an appeal be taken 
to the Secretary of the Interior within 30 days after notice of the 
superintendent’s decision, and the decision of the Secretary of the 
Interior upon appeal shall be conclusive. 

46. These regulations shall become effective and in full force from 
and after the date of approval and shall be subject to change or 
alteration at any time by the Secretary of the Interior. 

E. B. Meritt, 

Assistant Commissioner of Indian Affairs . 

Van. H. Manning, 
Director Bureau of Mines . 

Approved: October 20, 1915. 

Department of the Interior, 

Franklin K. Lane. 

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LIBRARY OF CONGRESS 



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